Accountancy, asked by yami80, 1 year ago

what is the meaning of cost of capital​

Answers

Answered by vaishuonsong
1

Definition: As it is evident from the name, cost of capital refers to the weighted average cost of various capital components, i.e. sources of finance, employed by the firm such as equity, preference or debt. In finer terms, it is the rate of return, that must be received by the firm on its investment projects, to attract investors for investing capital in the firm and to maintain its market value.

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